An evaluation of financial management practices in tier 3 state owned enterprises in Namibia
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Date
2022
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Publisher
University of Namibia
Abstract
The success or failure of any organisation whether public or private is reckoned on the
governance and effectiveness of its financial management practices. Moreover,
financial management practices have an impact on a broad range of areas within an
organisation, including, aggregate financial management, operations management,
governance and fiduciary risk management. Consequently, the main objective of this
study was to evaluate the financial management practices in Tier 3 SOEs in Namibia.
Specifically, the study investigated the current financial management practices
adopted by Tier 3 SOEs in Namibia and to determine their effects as well as to identify
the challenges regarding the implementation of financial management practices. The
study employed a descriptive survey research design to collect the data on financial
management practices from the CEOs, Accountants and Financial Directors/Managers
(FD/Ms) of Tier 3 Namibian SOEs. Semi - structured questionnaires were used to
collect the primary data and all data was entered and analysed using SPSS v.26.
Descriptive analysis was done and the results were presented in tables, figures and
charts. The findings show that, financial planning and control, reporting and analysis
of financial, working capital management and capital structures management practice
are current financial management practices adopted by Tier 3 SOEs in Namibia.
Companies have good financial performance. Lack of advanced knowledge and skills
was one of the challenges experienced in the implementation of financial management
practices in the SOEs. Failure to fill vacant positions and lack of support from
leadership (management) were also identified as challenges that hinder the
implementation of the financial management practices. Therefore, the study
recommends that the managers in SOEs should highly prioritise financial management
practices during the formulation of their organisation's strategies to enhance
transparency, accountability and consistency in financial operations. Finally, the study
also recommends that regulatory bodies should formulate appropriate policies and
regulations which would facilitate the implementation of financial management
practices in companies.
Description
A thesis submitted in partial fulfilment of the requirements for the (Master's Degree in Business Administration in Finance)